Professional Services Exclusion Bars Coverage Where Ordinary Negligence is Inseparably Intertwined With Professional Service
August 17, 2017 —
Christopher Kendrick & Valerie A. Moore – Haight Brown & Bonesteel LLPIn Energy Ins. Mutual Ltd. v. Ace American Ins. Co. (No. A140656, filed 7/11/17, ord. Pub. 8/10/17), a California appeals court found that a professional services exclusion barred coverage for wrongful death and other claims blamed on pipeline inspectors’ failure to identify and properly mark a gas pipeline that was ruptured during construction of another pipeline, resulting in an explosion and fire.
In Energy Ins. Mutual, a pipeline owner hired two temporary construction inspectors through a staffing company. The inspectors had to ensure compliance with engineering and safety standards, practices and procedures for pipeline construction, and understand construction drawings and blueprints. They worked together with one of the owner’s employees to perform daily surveillance to ensure the integrity of the pipeline and avoid third party damage.
Reprinted courtesy of
Christopher Kendrick, Haight Brown & Bonesteel LLP and
Valerie A. Moore, Haight Brown & Bonesteel LLP
Mr. Kendrick may be contacted at ckendrick@hbblaw.com
Ms. Moore may be contacted at vmoore@hbblaw.com
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N.J. Appellate Court Confirms that AIA Construction Contract Bars Insurer's Subrogation Claim
September 10, 2019 —
Saxe Doernberger & Vita, P.C.On April 4, 2019, the Appellate Division of the New Jersey Superior Court confirmed that the waiver of subrogation provision in a commonly used form construction contract, American Institute of Architects (AIA) form A201 — 2007 General Conditions of the Contract for Construction, precluded an insurer’s claims against a subcontractor.
In Ace American Ins. Co. v. American Medical Plumbing, Inc., the court considered Ace American Insurance Company’s (Ace) subrogation claim against a plumbing subcontractor who was allegedly responsible for a water main leak that caused approximately $1.2 million in damages to Ace’s insured, Equinox Development Corporation (Equinox).
In March 2012, Equinox entered into a contract with Grace Construction Management Company, LLC (Grace) to build the “core and shell” of a new health club. Equinox and Grace used AIA form A201 for their contract. Grace then hired American Medical Plumbing, Inc. (American) as a plumbing subcontractor for the project. In April 2013, the water main failed, flooding the health club.
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Saxe Doernberger & Vita, P.C.Saxe Doernberger & Vita, P.C. may be contacted at
coverage@sdvlaw.com
Connecticutt Class Action on Collapse Claims Faces Motion to Dismiss
January 02, 2019 —
Tred R. Eyerly - Insurance Law HawaiiThe federal district court dismissed some insurers from a class action suit alleging failure to provide coverage for collapse claims. Halloran v. Harleysville Preferred Ins. Co., 2018 U.S. Dist. LEXIS 179807 (D. Conn. Oct. 19, 2018).
A class of homeowners brought suit in 2016 against their homeowners insurance companies ("defendants") for failure to cover collapse claims. Plaintiffs alleged they bought their homes between 1984 and 2015. Each of the homes had basement walls that were "crumbling and cracking due to the oxidation of certain minerals contained in the concrete." As a result of the deteriorating concrete, plaintiffs claimed that their basement walls were in a state of collapse.
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Tred R. Eyerly, Damon Key Leong Kupchak HastertMr. Eyerly may be contacted at
te@hawaiilawyer.com
Engineer Probing Champlain Towers Debacle Eyes Possibility of Three Successive Collapses
July 05, 2021 —
Nadine M. Post - Engineering News-RecordThough the trigger may remain a mystery for some time, by the end of the week, the structural engineer probing the partial progressive collapse of a 40-year-old Surfside, Fla., residential condominium expects to complete a computer model of the unstable, 12-story remains of the building. The computer model of the still-standing wing of Champlain Towers South will initially be used to alert the search and rescue team to suspend operations if a hurricane is coming.
Reprinted courtesy of
Nadine M. Post, Engineering News-Record
Ms. Post may be contacted at postn@enr.com
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Peckar & Abramson Once Again Recognized Among Construction Executive’s “Top 50 Construction Law Firms™”
July 02, 2024 —
Peckar & Abramson, P.C.Peckar & Abramson, P.C. (P&A) is pleased to announce that it has once again been ranked among the top of Construction Executive’s (CE) “The Top 50 Construction Law Firms™.” P&A has been recognized in this manner since 2019, the inaugural year of the publication’s rankings.
According to CE, its 2024 ranking was the result of a rigorous and comprehensive survey that invited numerous U.S. law firms with a construction practice to participate. The data collected focused on unique metrics such as the firm’s construction practice, number of attorneys and clients, and year of establishment. CE’s algorithm meticulously weighed these factors, among others, to determine the ranking, ensuring the credibility and accuracy of the recognition.
Firm Chair
Steven M. Charney commented, “We are honored to be recognized as one of Construction Executive’s “Top 50 Construction Law Firms.” This recognition serves as a resounding testament to our commitment to the construction industry and our team’s hard work and dedication. We remain committed to providing exceptional legal services to our clients and striving for excellence in all we do.”
The complete rankings and profile are available
here.
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Peckar & Abramson, P.C.
Condominiums and Homeowners Associations Remain Popular Housing Choices for U-S Homeowners
July 11, 2022 —
Community Associations InstituteFalls Church, Va., July 06, 2022 (GLOBE NEWSWIRE) -- Maintenance-free, safety, and cleanliness are top features that make community associations a popular choice and lifestyle for millions of Americans. According to results from the 2022 Homeowner Satisfaction Survey, the overwhelming majority (89%) of homeowners and condominium association residents rate their overall experience of living in a community association as "very good" or "good" (67%), or neutral (22%).
At a time when community matters most, the majority (87%) said they knew their home was part of a community association and nearly half (45%) said the association made them more interested in the home. Eighty-seven percent of respondents believe that their governing board "absolutely" or "for the most part" serves the best interest of the community. More than half of residents (68%) believe that rules in their communities protect and enhance property values.
Results from almost identical national surveys conducted in 2005, 2007, 2009, 2012, 2014, 2016, 2018, 2020, and 2022 are strikingly consistent. The online survey of 1,507 homeowners and condominium association members nationwide with oversampling was conducted in in four states: Illinois, New York, North Carolina and Washington.
About Community Associations Institute
Since 1973, Community Associations Institute (CAI) has been the leading provider of resources and information for homeowners, volunteer board leaders, professional managers, and business professionals in the more than 355,000 homeowners associations, condominiums, and housing cooperatives in the United States and millions of communities worldwide. With more than 43,000 members, CAI works in partnership with 36 legislative action committees and 63 affiliated chapters within the U.S., Canada, South Africa, and the United Arab Emirates as well as with housing leaders in several other countries, including Australia, Spain, and the United Kingdom. A global nonprofit 501(c)(6) organization, CAI is the foremost authority in community association management, governance, education, and advocacy. Our mission is to inspire professionalism, effective leadership, and responsible citizenship—ideals reflected in community associations that are preferred places to call home. Visit us at www.caionline.org, and follow us on Twitter and Facebook @CAISocial.
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New Illinois Supreme Court Trigger Rule for CGL Personal Injury “Offenses” Could Have Costly Consequences for Policyholders
March 09, 2020 —
Michael S. Levine & Kevin V. Small - Hunton Insurance Recovery BlogThe Illinois Supreme Court’s recent decision in Sanders v. Illinois Union Insurance Co., 2019 IL 124565 (2019), announced the standard for triggering general liability coverage for malicious prosecution claims under Illinois law. In its decision, the court construed what appears to be a policy ambiguity against the policyholder in spite of the longstanding rule of contra proferentem, limiting coverage to policies in place at the time of the wrongful prosecution, and not the policies in effect when the final element of the tort of malicious prosecution occurred (i.e. the exoneration of the plaintiff). The net result of the court’s ruling for policyholders susceptible to such claims is that coverage for jury verdicts for malicious prosecution – awarded in today’s dollars – is limited to the coverage procured at the time of the wrongful prosecution, which may (as in this case) be decades old. Such a scenario can have costly consequences for policyholders given that the limits procured decades ago are often inadequate due to the ever-increasing awards by juries as well as inflation. Moreover, it may be difficult to locate the legacy policies and the insurers that issued such policies may no longer be solvent or even exist. A copy of the decision can be found
here.
The Sanders case arose out of the wrongful conviction of Rodell Sanders in 1994 by the City of Chicago Heights (the “City”). Mr. Sanders sought recompense for, among other things, malicious prosecution through a federal civil rights action against the City. In September 2016, Mr. Sanders obtained a consent judgment for $15 Million; however, at the time of the wrongful conviction, seventeen years earlier, the City’s only applicable insurance policy provided just $3 million in coverage. The City contributed another $2 million towards the judgment and, in exchange for Mr. Sanders’s agreement not to seek the $10 million balance from the City, assigned its rights under the policies for the 2012 to 2014 period.
Reprinted courtesy of
Michael S. Levine, Hunton Andrews Kurth and
Kevin V. Small, Hunton Andrews Kurth
Mr. Levine may be contacted at mlevine@HuntonAK.com
Mr. Small may be contacted at ksmall@HuntonAK.com
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Defective Panels Threatening Profit at China Solar Farms: Energy
January 21, 2015 —
Bloomberg NewsFlaws found in some Chinese solar panels can drastically eat into their efficiency, reducing how much power the panels will produce as the country races to meet aggressive goals to hold the line on fossil fuel emissions.
The defects, found in products set to be used only in China, are in a coating that suppresses reflections on glass, allowing the panels to capture more light. About 23 percent of samples taken from dozens of Chinese companies failed to meet requirements, according to regulators in China. For samples from Jiangsu, the eastern province where much of the glass is made, the rate was as high as 40 percent.
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Bloomberg News